27. August 2010 
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ING to sell its stake in Canadian property portfolio
ING has agreed to sell its 50% stake in ING Summit Industrial Fund LP, a Canadian light industrial property portfolio to a joint venture between KingSett Capital and Alberta Investment Management Corporation (AIMCo).
“As we focus on improving the performance of the Banking and Insurance businesses, managing risk and our business portfolio remain important priorities,” said Jan Hommen, CEO of ING Group. “This transaction is in line with ING’s stated objective of reducing its exposure to the real estate industry.”
The transaction value for 100% of Summit is approximately CAD 2.0 billion and includes assumed
debt. In addition to its direct investment in Summit, ING has an indirect participation through its 7.8% unit holding of ING Industrial Fund (IIF), an ING-managed listed property fund in Australia which owns the remaining 50% in Summit. As part of the transaction, IIF has agreed to simultaneously sell its stake in Summit to KingSett/AIMCo. Consequently, ING’s indirect participation in Summit will end as well.
Separately, ING has agreed to sell ING Real Estate Canada, the manager of Summit, to KingSett/AIMCo for an undisclosed amount.
The transaction is not expected to have a material impact on ING Group’s results and capital ratios and is expected to close in the fourth quarter of 2010, subject to regulatory approvals. The transaction will not affect the earlier announced evaluation of the position of ING Real Estate Investment Management within the bank. This separate process is ongoing.
“As we focus on improving the performance of the Banking and Insurance businesses, managing risk and our business portfolio remain important priorities,” said Jan Hommen, CEO of ING Group. “This transaction is in line with ING’s stated objective of reducing its exposure to the real estate industry.”
The transaction value for 100% of Summit is approximately CAD 2.0 billion and includes assumed
debt. In addition to its direct investment in Summit, ING has an indirect participation through its 7.8% unit holding of ING Industrial Fund (IIF), an ING-managed listed property fund in Australia which owns the remaining 50% in Summit. As part of the transaction, IIF has agreed to simultaneously sell its stake in Summit to KingSett/AIMCo. Consequently, ING’s indirect participation in Summit will end as well.
Separately, ING has agreed to sell ING Real Estate Canada, the manager of Summit, to KingSett/AIMCo for an undisclosed amount.
The transaction is not expected to have a material impact on ING Group’s results and capital ratios and is expected to close in the fourth quarter of 2010, subject to regulatory approvals. The transaction will not affect the earlier announced evaluation of the position of ING Real Estate Investment Management within the bank. This separate process is ongoing.
